Reliance Communications shares dive over 9% on insolvency case buzz
New Delhi: Shares of Reliance Communications Ltd (RCom) fell sharply by over 9% in early trade on Tuesday amid reports that China Development Bank has filed insolvency case against the telecom firm, which the company has denied.
The stock tanked 8.61% to Rs12.20 on the BSE. At NSE, shares of the company dived 9.36% to Rs12.10. However, later the stock recovered some of its early losses and was trading 4.12% lower at Rs12.80 at 11.40am on BSE.
BSE had sought clarification from RCom after market hours on Monday with respect to news that China Development Bank files an insolvency case against it. In a clarification to the BSE, a company spokesperson said, “The company has not been served any notice of the application filed by China Development Bank with NCLT(National Company Law Tribunal), as reported in the media.”
However, in the interest of all stakeholders, the spokesperson said: “The company is engaged through the JLF (joint lenders forum) with all its lenders for a successful resolution of the SDR process. The China Development Bank has also been actively participating in the JLF.”
The company is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT, the spokesperson added.
The company continues to remain engaged with all lenders including the China Development Bank and is confident and committed to a full resolution with the support of all the lenders.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
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